ABS-CBN Franchise Non-Renewal: What Are Its Effects?

The effects of the non-renewal of the ABS-CBN franchise in various aspects.

ABS-CBN FRANCHISE – This is how the closedown of ABS-CBN has affected these aspects a year after their application has been dumped and denied.

On May 5, 2020, the National Telecommunications Commission (NTC) issued a cease and desist order that forced ABS-CBN to go off-air. Solicitor General Jose Calida was the one who warned the regulators to do so or else, he would file charges against them if they grant the network the grace period to continue operating.

ABS-CBN Franchise
Photo lifted from The Filipino Times

And now, exactly a year after, what could have been the effects it did?

The closedown of the major network in the country amid the pandemic loses the chance for them to reach people in far-flung areas. ABS-CBN has the widest reach in the country which up until now, has remained unmatched. This is the second time the network has been shut down following the closure during the Marcos dictatorship 50 years ago. And it is at this time that people need the news the most.

ABS-CBN news chief Gina Reyes said, “I have always believed that if we remain true to our institutional and individual values, we will always muster the courage to keep going, with or without a franchise.”

They failed to secure the franchise but they were able to successfully shift to their various digital platforms to address the gaps that lack of franchise has created. The House committee on legislative franchises voted 70-11 where the landslide votes agreed to deny the franchise renewal. From Inquirer, Kapisanan ng mga Brodkaster sa Pilipinas (KBP) chair Ruperto Nicdao said that millions have started not watching television when the ABS-CBN closed down. Along with the closure of the network is also the closure of their regional channels, the largest reach in the country.

Philippines journalism professor Danilo Arao added that many people were not informed and reached most especially during the three consecutive typhoons that hit the country in 2020’s final quarter. And as per Nicdao, the biggest impact it has made is the “chilling effects” to the media indicating that “some members are saying even if we got our renewal, it does not stop the government from coming up with issues.”

Apart from the press freedom, ABS-CBN closure also affected the economy. For one is the massive layoffs of employees affecting talents, writers, production crew, management, visual artists, personal assistants, make-up artists, wardrobe crew, extras, caterers, accountants, drivers, and many others. The thousands of people who lost their jobs added to the unemployment rate of the country.

Also, in a hindsight, ABS-CBN has paid a whopping Php 70.5 billion from 2003 to 2019 which made them belong to the top non-individual taxpayers in the country.

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